An ideal storm of exterior influences have remaining the HR industry searching at global payroll solutions to assist them to fight world war 2 on talent, remain compliant, cope with regulatory pressures, mitigate their global HR risks and essential, leverage technology and employ ‘big data’ analytics to know their worldwide people costs.
When globalization was the term during the day, multinational payroll solutions were cobbled together according to domestic processes and ERP payroll modules, or in some instances “patches.” For big multinationals that may afford major IT investments throughout their worldwide markets, these solutions were adequate. However came the Enron scandal, SOX and also the subsequent wave of recent rules. Then to increase the right storm, a cloud emerged, a transformational technology that offered MNCs another thought process regarding their HCM applications, and importantly, an inexpensive global HR solution for that growing sector of micro-multinationals.
As the clouds were multiplying, a brand new SSAE 16 standard was implemented, to exchange a maturing SAS 70 standard and pace using the growing push towards more globally recognized worldwide accounting standards. Both SOX and SSAE 16 address the flow of knowledge into financial reporting systems, requiring that organizations evaluate and document all of the processes that are utilized to generate their financial statements, such as the processes which are utilized by their providers.
More lately, a provisional EU agreement continues to be arrived at around the principle of capping bonuses within the European banking industry, while U.S. regulators have convinced seven banking institutions bankers to control bonus pay. More rules such as this means more interest in global payroll analytics, a significant challenge for global organizations.
It can’t be considered a perfect storm with no economic crisis. The standard MNCs have weathered the storm, a brand new wave of micro MNCs emerged and everybody is modifying towards the new normal. There’s a war for talent and traditional recruitment strategies aren’t acceptable. Cost control is imperative and global risk minimization has had center stage.
HR managers have become true hr strategists: hiring local nationals, contracting temporary labor, seeking creative contingent worker strategies and looking after global HR compliance. They began to expand their recruitment efforts outdoors traditional geographic limitations, leveraging the specialized skills found all over the world all while controlling human capital costs and applying worker engagement techniques for their global workforce.
Yes, global payroll is hot, and incredibly awesome.